TORONTO, Aug. 15, 2016 /PRNewswire/ - Sun Life Financial
Inc. (TSX: SLF) (NYSE: SLF) ("Sun Life Financial") today announced
that it does not intend to exercise its right to redeem its
outstanding Class A Non-Cumulative Rate Reset Preferred Shares
Series 10R (the "Series 10R Shares") on September 30, 2016. As a result, subject to
certain conditions, the holders of Series 10R Shares will have the
right, at their option, to convert all or part of their Series 10R
Shares on a one-for-one basis into Class A Non-Cumulative Floating
Rate Preferred Shares Series 11QR of Sun Life Financial (the
"Series 11QR Shares") on September 30,
2016. Holders of Series 10R Shares who do not exercise their
right to convert their Series 10R Shares into Series 11QR Shares on
that date will retain their Series 10R Shares.
The foregoing conversions are subject to the following
conditions: (i) if Sun Life Financial determines that there would
be less than one million Series 10R Shares outstanding after
September 30, 2016, then all
remaining Series 10R Shares will automatically be converted into
Series 11QR Shares on a one-for-one basis on September 30, 2016, and (ii) alternatively, if
Sun Life Financial determines that there would be less than one
million Series 11QR Shares outstanding after September 30, 2016, no Series 10R Shares will be
converted into Series 11QR Shares. In either case, Sun Life
Financial will give written notice to that effect to any registered
holder affected by the preceeding minimums on or before
Thursday, September 22, 2016.
The dividend rate applicable to the Series 10R Shares for the
five-year period commencing on September 30,
2016 to but excluding September 30,
2021, and the dividend rate applicable to the Series 11QR
Shares for the three-month period commencing on September 30, 2016 to but excluding December 31, 2016, will be determined on
Wednesday, August 31, 2016 and will
be announced in a news release on August 31,
2016.
Beneficial owners of Series 10R Shares who wish to exercise
their right of conversion should communicate as soon as possible
with their broker or other nominee and should ensure that their
instructions are followed in order to ensure that the deadline to
exercise such right of conversion is met, which is 5:00 p.m. (ET) on Thursday, September 15, 2016.
Subject to regulatory approval, Sun Life Financial: (i) may
redeem the Series 10R Shares and the Series 11QR Shares in whole or
in part on September 30, 2021 and on
the 30th of September in every fifth year thereafter by
the payment of an amount for each share so redeemed of $25.00, together with all declared and unpaid
dividends to the date fixed for such redemption, and (ii) may
redeem the Series 11QR Shares in whole or in part on any other date
after September 30, 2016 by the
payment of an amount for each share so redeemed of $25.50, together with all declared and unpaid
dividends to the date fixed for such redemption.
An application will be made to list the Series 11QR Shares on
the Toronto Stock Exchange.
The Series 10R Shares and the Series 11QR Shares have not been
and will not be registered under the United States Securities Act
of 1933, as amended, and subject to certain exceptions, may not be
offered, sold or delivered, directly or indirectly, in the United States of America for the account
or benefit of U.S. persons. This release does not constitute an
offer to sell or a solicitation to buy such securities in the
United Sates.
About Sun Life Financial
Sun Life Financial is a leading international financial services
organization providing a diverse range of protection and wealth
products and services to individuals and corporate customers. Sun
Life Financial and its partners have operations in a number of
markets worldwide, including Canada, the United
States, the United Kingdom,
Ireland, Hong Kong, the
Philippines, Japan,
Indonesia, India, China,
Australia, Singapore, Vietnam, Malaysia and Bermuda. As of June 30,
2016, the Sun Life Financial group of companies had total
assets under management of $865
billion. For more information please visit
www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New
York (NYSE) and Philippine (PSE) stock exchanges under the
ticker symbol SLF.
Note to Editors: All figures in Canadian dollars except as
otherwise noted.
SOURCE Sun Life Financial Inc.